Crowdfunding firm Realty Mogul has reached $100 million in cash disbursements, a major milestone for the company, GlobeSt.com reports exclusively. The firm has two REITs, MogulREIT I and MogulREIT II as well as private placement opportunities, all of which contributed to the returns. The $100 million in cash disbursements includes cash flow, appreciation and return of principal. The first REIT has generated 8% annualized returns over the last 24 months. The second REIT, which is focused on long-term capital appreciation, has delivered two quarters of 4.5% returns.
“We’re proud to announce more than $100 million in investor disbursements and it says that our investment platform is working,” Jilliene Helman, CEO and co-founder at Realty Mogul, tells GlobeSt.com. “There is always risk when investing in commercial real estate, but we’re seeing some great early results through our strategy of investing in cash flowing real estate where there is value-add potential. We’re proud of the returns we’ve generated to date and grateful to our investors for allowing us to be stewards of their capital.”
The firm has generated these disbursements by focusing on institutional quality multifamily product. “Strategically, we continue to be over-weight multifamily,” says Helman. “While we have made investments in office buildings, retail shopping centers and industrial facilities, we find that many of our investors like the simplicity of investing in apartment buildings—tenants pay rent and we distribute cash flows after expenses.”
Multifamily in general has been among the most popular asset classes this cycle, and Realty Mogul sees strong investor demand for quality multifamily opportunities. “There is a major shortage of multifamily housing in our country and we expect demand for apartment living to continue to be strong,” adds Helman. “Our plan is to keep doing what we have been doing since 2013—providing discerning investors with access to institutional-grade commercial real estate.”
Helman plans to maintain this strategy going forward, focusing on both conservative underwriting standards and asset management of the individual properties. “Our future plans are to continue to invest in value-add real estate with a focus on multifamily,” she explains. “Given the under supply of apartments, trend of millennials to wait until later in life to purchase a single family home and the rise of baby boomers moving back into apartment buildings, we feel there are still good risk adjusted returns to be had.”